But there are reasons to be optimistic, we will get a good crop of public offerings
The IPO market So far in 2023 it’s been a goose egg, and we probably won’t get any interesting IPOs for another quarter or two. This is incredibly sad for your friendly local team of TechCrunch+ reporters who love an S-1 more than anything else.
The good news is that when we get the IPO train rolling again, we should be able to see a good run of public market debuts.
Let’s talk about why.
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if you go deep via Silicon Valley Bank research, which now feels quite different than it did two weeks ago, can get a good idea of why institutions aren’t expecting a wave of IPOs any time soon. In its State of the Markets for the First Half of 2023 report, SVB predicted that the market for “US VC-backed tech IPOs will likely be dormant in the first half of 2023.”
So far, that has been 100% correct.
However, the bank also predicted that as “the market gains clarity on the [interest] cap rate [and] With future revenue multiples lining up with long-term averages and pent-up demand building from institutional investors” and unicorns, we should expect no less than ten IPOs in the second half of the year from VC-backed companies.
When we first read it a while back, it felt a bit optimistic. Why would we go from zero to double digits in such a short time?
Since then we’ve gotten a little more context. TechCrunch+ recently spoke with arjun kapoormanaging partner and founder of Forecast Labs, on the issue of the initial public offering.
(Forecast Labs is a sister entity to Comcast Ventures. The latter is a venture shop that invests in areas of strategic interest to its parent company, Comcast NBCUniversal, a corporate merger that stretches from Internet access to cable TV and the content itself. Forecast, by contrast, trades shares for access to TV advertising, essentially offering CPA-based advertising at a lower rate than the tube market in exchange for shares. It’s quite an interesting model for companies that want to reach a larger consumer audience but at a discount).
